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RNS Hotlist August 21: Ashington, Audioboom, Ferro, Fusion, Harland, Hydrogen Utopia, Jubilee, Kendrick, Utopia, Oracle, Pensana, Redx, Tirupati


RNS Hotlist August 21: Ashington, Audioboom, Ferro, Fusion, Harland, Hydrogen Utopia, Jubilee, Kendrick, Utopia, Oracle, Pensana, Redx, Tirupati

Hydrogen Utopia International (HUI), a company specialising in turning non-recyclable mixed waste plastic into hydrogen, announced the appointment of Simon Francis Mann as non-executive Chairman of the Company with immediate effect. The company said that with Simon Mann’s contacts and willpower, it believes doors will open in places it could have never access. His energy and determination for HUI’s mission are striking.

Comment: If any banging of heads together to get the first waste plastic to hydrogen plant up and running was required, one would imagine that ex-SAS Simon Mann was the one to get it over the line. There has always been the lingering feeling that the fossil fuel brigade have been slowing down the advance of clean energy.

Oracle Power (ORCP), an international project developer, announced an update in relation to further development of Northern Zone project by Riversgold Limited. On 9 May 2023, Oracle announced signing of a binding Heads of Agreement with ASX listed Riversgold to farm-in to licence P25/2651, known as the Northern Zone Gold Project, located 26 km east of Kalgoorlie in Western Australia. The company said it was very pleased to see this promising update on its Northern Zone asset from Rivergold. Prior to this, Oracle’s work at the Northern Zone, had established that the gold system encountered at the project has potential scale, with a multi-million-ounce gold exploration target.

Comment: While one would not have guessed it from the recent share price performance, ORCP is starting to do what it has been aiming for, to be a genuine, significant, multi project operator. This point is underlined by the Northern Zone project potentially being a multi-million ounce affair.

Tirupati Graphite (TGR) the specialist graphite producer, provided an update with regards to the potential business combination and ongoing relationship with Tirupati Speciality Graphite Private Limited (now renamed PranaGraf Materials & Technologies Private Limited). TGR said the 2018 agreement between Tirupati and PranaGraf to combine the businesses has been frustrated by regulatory restrictions. The many benefits encourage us to continue to seek solutions to enable a combination to be executed. Having completed the acquisition of Suni Resources and arranged the progress of ramp up of production at our Madagascar projects, it is now well placed to focus on this and shall update the markets as it progresses further.

Comment: It can be seen that TGR has plenty of strings to its bow, and that getting PranaGraf over the line would be a welcome addition to its operations.

Redx (REDX), the clinical-stage biotechnology company, has received Orphan Drug Designation from the US FDA for the potential treatment of Idiopathic Pulmonary Fibrosis (IPF). Zelasudil is currently in a Phase 2a clinical study for IPF, with topline data expected in Q1 2024. The company said it was delighted that the FDA has recognised the potential of zelasudil for the treatment of IPF and granted Orphan Drug Designation.

Comment: Any FDA nod has to be included in the RNS Hotlist, as it is one of the more reliable fundamental flags. Given that shares of REDX are on year lows, the news may be timely for those hoping for recovery.

Fusion Antibodies (FAB), specialists in pre-clinical antibody discovery, announced an update on the company’s AI/ML-AbTM (pronounced AIM-Lab) service offering. The company said it was delighted to be able to announce the successful delivery of the AI/ML-AbTM service utilizing its established production and evaluation capabilities and an option to include its proprietary Mammalian Display technology, which can significantly improve success rates, output affinities while reducing the cost per sequence test to as little as 1% of the cost of lower throughput methods.

Comment: It is apparent that since the last fundraise FAB is doing its best to regroup and take its strategy forward. The latest AI/ML-AbTM service offering underlines the journey to recovery may have begun.

Kendrick Resources (KEN), a mineral exploration and development company. provided an operational update for its Airijoki Project in Vittangi and initial work undertaken on the recently acquired Mjövattnet nickel – copper – PGM licence in Sweden. The company said the drilling programme is a result of our ongoing fieldwork, and it is particularly excited about the strong geophysics and geo-chemical results that have targeted the drilling positions. It eagerly awaits the results of the Mjövattnet nickel, copper and PGM soil sampling programme.  We are confident for the potential of strike extension as well as well as generating future targets within the licence.  The current soil programme will greatly assist us in this direction.

Comment: Although London investors are apparently spoiled for choice as far as junior miners, KEN does stand out given the strength of its portfolio, and perhaps just as important, its position near to key European manufacturers.

Audioboom (BOOM), the podcast company, has ranked as the fifth largest US publisher in two key industry reports. Edison Research ranked Audioboom 5th for weekly audience reach during Q2 2023, with Triton Digital ranking the Company in 5th for average weekly downloads for July 2023. In the Triton Digital ranker Audioboom climbed above US radio giant Cumulus for the first time, with only Amazon and Sirius XM ahead of the Company in both rankers. The company said it was delighted that it continues to compete strongly with the world’s biggest audio companies in the key US market.

Comment: It will be interesting to see whether the market appreciates BOOM’s “Top of the Pops” status amongst its peers, rather than say, statistics regarding earnings growth. But at least after the umpteenth director share purchase the shares seem to have finally found a floor towards 150p.

Pensana’s  (PRE) operational update on its mine and processing plant in Longonjo, Angola is  comprehensive.  There are details of the re-engineering and how the $200m  needed for the mine development will be spend leading to production. Longonjo is a world class, high-grade, near surface magnet metal rare-earth orebody, with direct access to affordable hydroelectric power and the Lobito Corridor rail and port infrastructure which are now both operational. The NDPr oxide it will produce is used to produce ultra strong magnets and is currently worth $67,000 a ton but anticipated to be worth over $100,000 as demand from electric vehicles and wind power generators grows. This should make a very valuable mine. There is strong support from the Angolan government, also, an investor in PRE, which has implemented a modern mining code with an attractive fiscal regime and a range of investment incentives including tax exemptions and customs duty exemptions.

Comments: It seems that once the funding source is finally announced this will indeed be a world class project, until that very key funding  link is in place the shares currently 22p could be  volatile, although this update should help  with the funding.

Jubilee Metals Group (JLP), a diversified metals processing group, provided an update on the chrome JV in South Africa as well as an update on the expansion of its Roan Concentrator in Zambia. The company said its chrome production units form a vital part of the South African business’ profitability and cost competitiveness, especially at a time when chrome prices are particularly strong, and this largely offsets the weakness in the PGM basket price. The strength and robustness of its diversified metal focus is best demonstrated during such volatility in metal prices where both chrome and copper are seeing strong price support, offsetting the weakness in both PGMs and cobalt.

Comment: JLP continues to be underappreciated, despite all the operational progress being made, a point which is highlighted by today’s RNS. Presumably the market is still ignoring the positives here, such as strong chrome prices.

Harland & Wolff Group (HARL), the UK quoted company focused on strategic infrastructure projects, said it has been notified that, in relation to the judicial review of the company’s Islandmagee Gas Storage Project, the matter has been listed for judgement on Thursday 31 August 2023. HARL said a further announcement will be made once the company has formally received the judgement.

Comment: There is nothing that the punters like betting on than a binary event, even if it is not that binary. It could be that the run up to the 31 August judgement focuses minds as far as the recent rebound in the stock from below 10p.

Ferro-Alloy Resources (FAR), the vanadium producer and developer, provided a trading update in respect of recent developments at the company’s existing operations. The company said that with all plant modifications now complete and operating efficiently, these supply chain issues are disappointing. That said, the progress in the feasibility study, the main driver of the company’s value, is very encouraging and it looks forward to updating shareholders on its results.

Comment: FAR has been laying low for quite a while, so today’s reassurance from the company that the waiting game may be over soon, could be helpful to the share price.

Ashington Innovation (ASHI), a SPAC established to acquire businesses primarily in the technology sector, announced that it has received approval for its ordinary shares to commence trading on the Frankfurt Stock Exchange under the ticker symbol “6FW”. The company said it was thrilled to announce the listing of our shares on the Frankfurt Stock Exchange. As one of the largest exchanges in the world, its dual-listing will enhance trading liquidity and facilitate investment in Ashington by institutional and retail investors across Europe.

Comment: Given current conditions and sentiment on the London market, even a dual listing on the Mongolian stock exchange might be a decent move in terms of providing additional liquidity. Presumably German investors like SPAC’s more than those in London.

Disclaimer & Declaration of Interest:
The information, investment views, and recommendations in this Zaks Traders Cafe interview are provided for general information purposes only. Nothing in this interview should be construed as a promotion or solicitation to buy or sell any financial product relating to any companies under discussion or referred to or to engage in or refrain from doing so or engage in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the commentator but no responsibility is accepted for actions based on such opinions or comments. The commentators may or may not hold investments in the companies under discussion.



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